In the News

WASHINGTON -- If U.S. Rep. French Hill has his way, bankers who help law enforcement agencies by keeping suspicious accounts open won't have to worry about being sanctioned for their assistance.

The Republican from Little Rock, himself a former banker, has introduced legislation providing banks safe harbor from regulators in these instances.

The House passed the legislation last week. It now heads to the U.S. Senate.

The House passed similar legislation last year as well.

Law enforcement officials sometimes send banks what is known as a "keep open" letter requesting that they allow transactions to continue rather than cutting ties with shady clients.

The cooperation is appreciated by crime fighters, but the unusual banking activity raises red flags for bank examiners, Hill has said.

The legislation, if approved, would ensure that bankers aren't docked on compliance exams for complying with this type of request.

The bill wouldn't relieve the bank of its obligation to continue monitoring and reporting any subsequent suspicious transactions arising from the accounts.

Hill is the former chairman and chief executive officer of Delta Trust and Banking Corp., a Little Rock financial institution that he founded and led before its purchase in 2014 by Simmons First National Corp. of Pine Bluff.

In an interview, Hill called the legislation "a straightforward, common-sense bill," arguing that it would help "a bank and the law enforcement agency to work together to pursue criminals."

The bill, HR758, passed 404-7.

Lorrie Trogden, president and CEO of the Arkansas Bankers Association, said her organization applauds Hill's efforts.

If approved, it would "protect banks from regulatory agency backlash while complying with law enforcement requests. HR758 allows banks to continue to combat money laundering and terrorism without fear of repercussion."